Home Issue 2018-04-06 Will China Tariffs Impact Southeastern Growers?

Will China Tariffs Impact Southeastern Growers?

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There are 234 reasons for American business to be upset about President Trump’s tariffs on imports of Chinese steel and aluminum. That’s the number of items on a list released by China this week that will in return see 15%-25% tariff increases if the President’s proposal comes to fruition, something that could happen within a couple of months.

China’s retaliatory tariffs could possibly go into effect as soon as next week.

While many of the items on China’s list impact agriculture and the produce industry, Southeastern growers are largely sheltered. California’s citrus and grape industries will take a beating, as will nut producers. Soybean growers and pork producers across the nation will also feel the brunt of China’s retaliation.

But whether by coincidence or by design, Southeastern growers stand to suffer least of any in the nation. Maybe that’s why Secretary of Agriculture Sonny Perdue, former governor of Georgia, supports the Trump tariffs despite pushback from many of his constituents. Perdue sent this Tweet out Thursday morning:

Sec. Sonny Perdue @SecretarySonny

I’ve been in steady contact w/@POTUS and stand w/him in his defense of America against unfair Chinese practices on U.S. intellectual property. The president has assured me he won’t let our farmers bear the brunt of China’s retaliation. That’s what I’m conveying to ag community.

There are numerous items on the list that are produced in the Southeast; few of those involve current trade agreements with China, while the status of others is unclear at the moment.

For instance, the Chinese retaliatory tariff list includes 18 named nuts or nut products. Peanuts, a major crop in Georgia and elsewhere in the Southeast, are not on that list. Pecans, another Southern staple (Georgia is typically the nation’s production leader) are not specifically mentioned by name and it’s unclear whether they might be included in a line item that reads, “Other fresh or dried nuts.” China is a large market for Georgia pecans.

And while California citrus growers will feel the heat from Chinese tariffs, the already beleaguered Florida citrus industry will not be impacted. Florida Citrus Mutual spokesman Andrew Meadows explains that China simply is “not a market for us.”

California Sen. Dianne Feinstein is hardly a friend of conservative growers — but in a sterling example of politics making strange bedfellows, she had this to say via Twitter April 4:

Sen. Dianne Feinstein
@SenFeinstein Apr 4
President Trump’s trade war will hit California farmers hard. $2 billion worth of CA exports—including all exported almonds, walnuts, raisins, plums, grapes, kiwis, dates and figs—will now be subject to a 15 % tariff when exported to China. How does that protect American jobs?

“There are no winners in a trade war, only casualties.  As trade tensions continue to mount with China, the expanded list of tariffs on food and agriculture exports are making America’s farmers the first casualties.

“Our corn farmers have worked for decades to support fair and open trade practices because we understand that trade is a two-way street.  In today’s global economy, we know that we need to be competitive to grow and maintain our market share.  Our farmers have done that, which is why agriculture has a positive trade balance.

“In 2018, the U.S. is forecast to export $139.5 billion in agricultural goods to the 95 percent of consumers who live outside the U.S.  Instead of new protectionist policies, our nation’s focus should be on growing market access and promoting expanded trade from our most competitive industries.

“We do have a window of opportunity to reach a mutually beneficial trade position with China until the time that tariffs are fully implemented. We need to be measured, professional and business-like in our approach to keeping the trade doors open with China. Equally important, we need the President to understand the implications that these trade actions have for America’s farm families.”

Here are the lists of items targeted for tariffs by China. We list the original 128 first, followed by a 106-item addendum released earlier this week:

The Original 128

Fresh fruit, dried fruit and nut products
1 Dried coconut 15%
2 Coconut without inner shell 15%
3 Other coconut 15%
4 Unhulled Brazilian nuts 15%
5 Shelled Brazilian nuts 15%
6 Unshelled cashews 15%
7 Shelled cashew 15%
8 Unshelled almonds 15%
9 Shelled almonds 15%
10 Hazelnuts 15%
11 Unshelled hazelnuts 15%
12 Unshelled walnuts 15%
13 Walnut kernels 15%
14 Unhulled chestnut 15%
15 Other shelled chestnuts 15%
16 Unhulled pistachio fruit 15%
17 Hulled pistacchio nut 15%
18 Other unhulled macadamia nuts 15%
19 Roasted macadamia nuts 15%
20 Betel nut fruit 15%
21 Pine nuts 15%
22 Other fresh or dried nuts 15%
23 Fresh or dried plantain 15%
24 Other fresh or dried bananas, except for plantains 15%
25 Fresh or dried dates 15%
26 Fresh or dried figs 15%
27 Fresh or dried pineapple 15%
28 Fresh or dried avocado 15%
29 Fresh or dried guava 15%
30 Fresh or dried mango 15%
31 Fresh or dried mangosteen 15%
32 Fresh or dried orange 15%
33 Other citrus (including mandarin orange and satsuma orange) 15%
34 Clementine orange 15%
35 Virgin orange and similar hybrid citrus 15%
36 Grapefruit, including pomelo 15%
37 Lemons and limes 15%
38 Unlisted citrus fruits 15%
39 Fresh grapes 15%
40 Raisins 15%
41 Fresh watermelon 15%
42 Fresh cantaloupe 15%
43 Papaya 15%
44 Fresh apples 15%
45 Fresh pears and pears 15%
46 Other fresh pears 15%
47 Fresh sour cherries 15%
48 Other fresh cherries 15%
49 Peaches, including nectarines 15%
50 Fresh plum and prunes 15%
51 Fresh strawberries 15%
52 Fresh raspberry, blackberry, mulberry and loganberry 15%
53 Fresh cranberry and cowberry 15%
54 Kiwi 15%
55 Fresh durian 15%
56 Persimmon 15%
57 Fresh lychee 15%
58 Fresh longan 15%
59 Rambutan 15%
60 Fresh sweet lychee 15%
61 Fresh carambola 15%
62 Fresh lotus fog 15%
63 Fresh pitaya 15%
64 Fruits not listed 15%
65 Frozen strawberries 15%
66 Frozen raspberries, blackberries, mulberries, rose hips, currant and gooseberries 15%
67 Frozen fruits and nuts, not listed 15%
68 Temporarily preserved cherries 15%
69 Other temporarily preserved fruits and nuts 15%
70 Dried apricots 15%
71 Mei qiang and li gan 15%
72 Dried apples 15%
73 Dried longan and pulp 15%
74 Dried persimmons 15%
75 Red dates 15%
76 Dried lychee 15%
77 Unlisted dried fruit 15%
78 Assorted nuts or dried fruits 15%
Wine
79 Sparkling wine 15%
80 Other fresh brewed wines packed in containers of two liters or less, or brewed with alcohol inhibiting fermentation of grape juice 15%
81 Wines brewed with other fresh grapes packed in two-litre containers, but not more than 10 litres, or containing alcohol brewed from fermented grape juice 15%
82 Wines made from other fresh grapes packed in containers of 10 liters or more, or brewed with alcohol, which inhibits grape juice fermentation 15%
83 Other items from grape juice wine 15%
Modified ethanol
84 Modified ethanol and other alcohols of any concentration 15%
Ginseng
85 American ginseng 15%
86 Other fresh ginseng 15%
87 Unlisted ginseng 15%
Stainless steel pipes
88 Stainless steel oil and gas pipeline pipe, 215.9mm ≤ outside diameter ≤ 406.4mm 15%
89 Stainless steel oil and gas pipeline pipe, 114.3mm < outside diameter < 215.9mm 15%
90 Stainless steel oil and gas pipeline pipe, outside diameter ≤114.3mm 15%
91 Stainless steel oil and gas pipeline pipe, outside diameter > 406.4mm 15%
92 Other steel oil and gas pipeline pipes, 215.9mm ≤ outside diamteter ≤ 406.4mm 15%
93 Pipes for other steel, oil and gas pipelines, 114.3mm < outside diameter <215.9mm 15%
94 Pipes, other steel, petroleum and natural gas, outside diameter ≤ 114.3mm 15%
95 Other steel oil and gas seamless pipe, external diameter > 406.4mm 15%
96 Oil and gas drilling pipes made of stainless steel, outside diameter ≤ 168.3mm 15%
97 Oil and gas drilling pipes made of stainless steel, outside diameter>168.3mm 15%
98 Other steel drilling oil and gas drilling pipes, outside diameter ≤ 168.3mm 15%
99 Other steel drilled oil and gas drilling pipes, external diameter>168.3mm 15%
100 Seamless casing and conduits for drilled petroleum or natural gas made of stainless steel 15%
101 Other seamless steel casings for oil and gas drilling with a yield strength of less than 552 MPa catheter 15%
102 Other steel drilling oils with a yield strength of 552 MPa or more but less than 758 MPa and seamless casing and conduits for natural gas 15%
103 Seamless sets for oil and gas drilling of other steels with a yield strength of 758 MPa or more Tubes, catheters 15%
104 Seamless boiler tubes for cold drawn or cold rolled iron or ordinary steel 15%
105 Seamless or cold-rolled iron or common steel seamless geologic drill pipe, casing 15%
106 Undrawn or cold-rolled iron or plain steel seamless circular cross-section tubes 15%
107 Non-cold drawn or cold rolled iron or ordinary steel seamless boiler tubes 15%
108 Non-cold-drawn or cold-rolled iron or ordinary steel seamless geologic drill pipe, casing 15%
109 Non-cold drawn or cold-rolled iron or plain steel seamless circular cross-section tubes, not elsewhere specified 15%
110 Cold drawn or cold rolled stainless steel seamless boiler tubes 15%
111 Undrawn or cold-rolled stainless steel seamless circular cross-section tubes 15%
112 Non-cold drawn or cold rolled stainless steel seamless boiler tubes 15%
113 Non-cold drawn or cold rolled stainless steel seamless circular cross-section tubes 15%
114 Cold-drawn or cold-rolled other alloy steel seamless boiler tubes 15%
115 Seamless steel alloys, cold drawn or cold rolled 15%
116 Unalloyed cold-drawn or cold-rolled alloy steel seamless circular cross-section tubes 15%
117 Other alloy steel seamless boiler tubes, not drawn or cold-rolled 15%
118 Non-cold-drawn or cold-rolled seamless steel tubes and casings for other alloy steels 15%
119 Non-cold drawn or cold rolled alloy steel seamless circular cross-section tubes 15%
120 Other seamless steel tubes and hollow profiles (except cast iron) 15%
Pork products
121 Fresh or cold boned pig forelegs, hindquarters and their meat 25%
122 Other fresh or cold pork 25%
123 Other frozen whole head and half pork 25%
124 Frozen bone forelegs, pigs’ legs and their meat 25%
125 Other frozen pork 25%
126 Frozen pork liver 25%
127 Other frozen pork chops 25%
Scrap aluminum
128 Aluminum scrap 25%

 

The Additional 106 (All Subject To 25% Tariff)

  1. Yellow soybean
  2. Black soybean
  3. Corn
  4. Corn flour
  5. Uncombed cotton
  6. Cotton linters
  7. Sorghum
  8. Brewing or distilling residues
  9. Other durum wheat
  10. Other wheat and mixed wheat
  11. Whole head and half head fresh and cold beef
  12. Fresh and cold beef with bones
  13. Fresh and cold boneless beef
  14. Frozen beef with bones
  15. Frozen boneless beef
  16. Frozen boneless beef
  17. Other frozen beef chops
  18. Dried cranberries
  19. Frozen orange juice
  20. Non-frozen orange juice
  21. Whiskey
  22. Unstemmed flue-cured tobacco
  23. Other unstemmed tobacco
  24. Part or all of the stemmed flue-cured tobacco
  25. Some or all of the other tobacco stems
  26. Tobacco waste
  27. Tobacco cigars
  28. Tobacco cigarettes
  29. Tobacco substitutes (Cigars and Cigarettes)
  30. Hookah tobacco
  31. Other tobacco for smoking
  32. Homogenized or reconstituted tobacco
  33. Other tobacco and tobacco substitute products (including tobacco essence)
  34. 2.5L SUVs with a displacement of ≤ 3L
  35. Other vehicles equipped with a ignited reciprocating piston internal combustion engine and a drive motor, except that the capacity of the cylinder that can be charged by plugging in an external power source is more than 2500ml, but less than 3000ml SUV (4 wheel drive)
  36. 1.5L Vehicles with discharge capacity ≤ 2L
  37. Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor, except for the cylinder capacity (displacement) that can be charged by plugging in an external power supply between 1000ml and 1500ml of cylinder capacity (displacement) off-road vehicle (4 wheel drive)
  38. 1.5L Passenger cars with exhaust capacity ≤ 2L, ≤ 9 seats
  39. Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor. Except for the cylinder capacity (displacement) that can be charged by plugging in an external power supply exceeding 1000ml, but not exceeding 1500ml of cylinder capacity (displacement). Passenger cars up to 9 seats
  40. 3L< Passenger cars with exhaust capacity ≤ 4L, ≤ 9 seats
  41. Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor, except for the capacity of the cylinder (displacement) that can be charged by plugging in an external power source more than 3000ml, but no more than 4000ml and 9 or fewer passenger seats
  42. Off-road vehicles with displacement ≤ 2.5L
  43. Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor, except that the capacity of the cylinder (displacement) that can be charged by plugging in an external power source between 2000ml and 2500ml of buggy (4 wheel drive)
  44. Passenger cars with an exhaust capacity ≤ 2.5L and no more than 9 seats
  45. Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor. The capacity of the cylinder (displacement) that can be charged by plugging in an external power source between 2000ml and 2500 ml
  46. 3L < Off-road vehicle with exhaust capacity ≤ 4L
  47. Other vehicles that are equipped with an ignited reciprocating piston internal combustion engine and a drive motor, except that the capacity of the cylinder (exhaust capacity) that can be charged by plugging in an external power source greater than 3000ml, but not exceeding 4000ml
  48. 2.5L < Diesel-powered off-road vehicle with exhaust capacity ≤ 3L
  49. Vehicles equipped with compression ignition piston internal combustion engine (diesel or semi-diesel engine) and other vehicles that use electric motors, which can be charged through an external power source Cylinder capacity (displacement) exceeds 2500 ml, but no more than 3000 ml off-road vehicle (4 wheel drive)
  50. 2.5L< Passenger cars with exhaust capacity ≤ 3L, ≤ 9 seats
  51. Other vehicles that are equipped with an ignited reciprocating piston internal combustion engine and a drive motor. The capacity of the cylinder (exhaust capacity) that can be charged by plugging in an external power supply between 2500ml and 3000ml with 9 seats or less
  52. Off-road vehicles with displacement > 4L
  53. Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor, capable of charging by plugging in an external power source except for cylinder capacity (displacement) more than 4000 ml SUV (4 wheel drive)
  54. Other vehicles which are equipped with an ignited reciprocating piston internal combustion engine and a drive motor and can be charged by plugging in an external power source
  55. Other vehicles that are equipped with a compression ignition type internal combustion engine (diesel or semi-diesel) and a drive motor, other than vehicles that can be charged by plugging in an external power source
  56. Other vehicles that are equipped with an ignition reciprocating piston internal combustion engine and a drive motor and can be charged by plugging in an external power source
  57. Other vehicles that are equipped with a compression-ignition reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source
  58. Other vehicles that only drive the motor
  59. Other vehicles
  60. Other trucks with a gasoline type ≤ 5 tons
  61. Unclassified transmissions and other parts for motor vehicles
  62. Liquid Propane
  63. Primary Shaped Polycarbonate
  64. Catalysts with precious metals and their compounds as actives
  65. Diagnostic or experimental reagents attached to backings, except for goods of tariff lines 32.02,32.06
  66. Chemical products and preparations for the chemical industry and related industries, not listed elsewhere
  67. Perfluorooctanyl sulfonamide or perfluorooctane sulfonyl chloride
  68. Items listed in Note 3 to this Chapter containing four, five, six, seven or octabromodiphenyl ethers
  69. Contains 1,2,3,4,5,6-HCH (6,6,6) (ISO), including lindane (ISO, INN)
  70. Mainly consists of (5-ethyl-2-methyl-2oxo-1,3,2-dioxaphosphorin-5-yl)methyl Dimethyl Phosphonate and Bis[(5-Ethyl-2-methyl-2-oxo-1,3,2-dioxaphosphorane) Heterocycle A mixture of hex-5-yl) methyl]methyl phosphonate (FRC-1) and Products
  71. Articles listed in Note 3 to this Chapter containing PeCB (ISO) or Hexachlorobenzene (ISO)
  72. Containing aldrin (ISO), toxaphene (ISO), chlordane (ISO), chlordecone (ISO), DDT (ISO) [Diptrix (INN), 1,1,1-trichloro-2 ,2-Bis(4-chlorophenyl)ethane], Dieldrin (ISO, INN), Endosulfan (ISO), Endrin (ISO), Heptachlor (ISO) or Mirex (ISO)
  73. Other carrier catalysts
  74. Other polyester
  75. Reaction initiators and accelerators that are not specified elsewhere
  76. Polyethylene with a primary shape specific gravity <0.94
  77. Acrylonitrile
  78. Lubricants (that do not contain oil or oil extracted from bituminous minerals)
  79. Diagnostic or experimental formulation reagents, whether or not attached to backings, other than those of heading 32.02, 32.06
  80. Lubricating oil additives that do not contain oil or oil extracted from bituminous minerals
  81. Primary shaped epoxy
  82. Polyethylene terephthalate sheet foil flat strips
  83. Self-adhesive plastic plates, sheets, films and other materials
  84. Plastic non-foam plastic sheets
  85. Plastic products
  86. Primary ethylene polymers
  87. Ethylene-α-olefin copolymers, specific gravity less than 0.94
  88. Primary shapes of acrylic polymers
  89. Primary shapes of pure polyvinyl chloride
  90. Primary polysiloxane
  91. Other primary polysulphides, polysulfones, and other tariff numbers as set forth in Note 3 to Chapter 39 and unlisted new products
  92. Plastic plates, sheets, films, foils and strips, not specified elsewhere
  93. 1,2-Dichloroethane (ISO)
  94. Halogenated butyl rubber sheets, sheets, strips
  95. Other heterocyclic compounds
  96. Adhesives based on other rubber or plastics
  97. Polyamide-6,6 slices
  98. Other primary-shaped polyethers
  99. Primary-shaped, unplasticized cellulose acetate
  100. Aromatic polyamides and their copolymers
  101. Semi-aromatic polyamides and their copolymers
  102. Other polyamides of primary shape
  103. Other vinyl polymer plates, sheets, tapes
  104. Non-ionic organic surfactants
  105. Lubricants (containing oil or oil extracted from bituminous minerals and 70% by weight)
  106. Aircraft and other aircraft with an empty weight exceeding 15,000 kg but not exceeding 45,000 kg

 

 

 

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